Why market fears of an Air China takeover of Cathay Pacific proved unfounded

When trading in Cathay Pacific shares was suspended early last week, the local stock market rumour mill went into overdrive. Foremost was speculation over whether Air China, the second-largest shareholder in the airline after Swire Pacific, might be riding to the rescue. As Forbes magazine noted, this is the “default rumour” whenever Cathay Pacific has news lined up – ever since Air China first took a stake in 2006, and in particular since in 2009 it bumped up against the 29.99 per cent…

Read the original article at South China Morning Post